holding costs


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Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.

holding costs

See carrying charges.

References in periodicals archive ?
Assuming that the distribution of the component's lead time is uniform, then the value of the lead time, unit holding costs for all components, ordering cost, and backordering cost is shown in Table 3.
During each order ordering period, the holding cost can be expressed as
When holding costs are insignificant, the thumb rule for EOQ/EPQ appears to be 'higher the better.
lead time i; holding costs per unit per day $0,45; stock out cost per unit $30,00 and order costs per order $50,00.
Model contains information about ordering costs per meat type, holding costs (20-30% of ordering costs) and shortage costs.
Holding costs and deterioration costs are different in OW and RW due to different preservation environments.
If the potential effects of recognizing unallocated overhead as an expense would have a material effect upon a company's net income, or upon a manager's bonus, that manager must trade off inventory holding costs on the excess inventory against the perceived problem of reduced current period income.
It is important to realize that these and other external and internal factors for a firm may fluctuate, and can therefore change the holding costs from one period to the next.
Several industry leaders and representatives from top energy companies, such as ComEd, discussed such money-saving issues as knowing where energy is used, reviewing energy bills to discover more economical solutions, maintaining equipment, and understanding melting and holding costs.
When demand is low, the scheduling flexibility effect is particularly prominent; hence, the f heuristics trade the high holding costs for small processing costs.
an analysis of appropriate deductions and discounts for unsold units, including holding costs, marketing costs, and entrepreneurial profit (FAQ #8).
Challenger Atkins and Dore, who is running for a third term, concur that development is inevitable in the Santa Clarita Valley, and that local water agencies must obtain an adequate supply to meet regional growth projections, while holding costs down for ratepayers.